Post the Bitcoin ETF approvals in the last week, the BTC price has been showing a muted performance with its price hovering around $42,000 levels. Although Bitcoin gave a run-up to $48,000 during the time of the ETF approval, the selling pressure thereafter has been impactful.
Large Bitcoin Wallets Moving Older Coins
In recent insights provided by on-chain data provider Santiment, a notable trend has emerged in anticipation of the approved Bitcoin Exchange-Traded Funds (ETFs) last Wednesday. Large Bitcoin wallets have been actively moving older coins at an accelerated rate, resulting in a significant decrease in the average age of coins within these wallets.
While there are subtle indications that this movement of older coins may have temporarily concluded, the consequence could be a potential pause in the ongoing bullish cycle in the cryptocurrency market.
However, Santiment suggests that the actions of a few major whales could reignite the market, leading to a further decline in the mean dollar invested age of Bitcoin and potentially triggering another upward wave, testing levels around $45,000 and perhaps even reaching $50,000 once again.
A Look At Options Data and ETF Impact
As per data provided by Greeks.Live, the predominant focus today in the financial landscape revolves around the impact of U.S. stock ETF trading on cryptocurrency prices. Examining today’s block trades reveals that a substantial $120 million, constituting 16% of the total, was transacted in large put options—an unusually high volume compared to typical trading days.
Among individual block trades surpassing $5 million, a notable trend emerged with a prevalence of short-selling in the form of short-term put options. Simultaneously, smaller orders tended to lean towards buying short-term puts.
Despite the logical concerns surrounding the market’s current outlook, there is a growing sentiment among large traders that the market may have found stability, offering a glimmer of optimism amid prevailing uncertainties.
The impact of the Bitcoin ETF approval couldn’t be visible in the near term. However, it will hold strong significance over the long term, as per several market analysts. Popular crypto analyst Michael van de Poppe stated:
“The Bitcoin ETF has provided a negative return since the start. The Bitcoin ETF has provided a massive net inflow on the first few days. More than $600 million on the first day. The real impact of the ETF will be shown in the coming few years. A mega bullish event”.
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